EMPLOYMENT LAW: Proposed Bill on Tax Hike to Affect Employees’ Medicare Payments

June 18, 2010

Los Angeles - A proposed tax-extender bill in the Senate may strain common employees' net salary as it will impose a $250- deduction for teachers, additional $500 for property taxes, and many others.

The bill appears as an advantage for unemployed workers and doctors, as it will prevent further cut to Medicare payment. Tax professionals have challenged this and have contested the excessive tax, social security and Medicare deduction for common employees and low income workers.

Senate Finance Committee officials Michael Enzi and Olympia Snowe have proposed amendments to H.R. 4213 dubbed as the "Job-killing tax hike" bill. The legislators have asserted that further statutory deductions will strain the net income of average workers and strain the family budget for basic commodities.

The Senate officials also commented that the tax-extender bill will put additional fiscal burden to small business owners.